The Only 4%-Off Sale Consumers Go Wild For

By Kelli B. Grant

iStockphoto

Bargain-hunting consumers have learned in recent years to pass up small sales and wait for 40% off or better. The rare exception: state sales tax holidays, which have the power to bring shoppers out in droves.

Sixteen states are offering holidays this year (see the full list below), and the first, Mississippi’s, runs July 29 and 30. In most years, the 4% to 6% most consumers save during such a holiday isn’t worth the gas to get to the mall. But this year, with retailers’ back-to-school sales kicking in early and a less-than-stellar economic outlook, shopping while the tax is waived is a smart move, says Jeff Green, an independent retail analyst. “Everything is already on sale, and probably as low as it’s going to go, once you hit August 1,” he says.

The National Retail Federation expects consumers will spend slightly less this year due to economic constraints, and even a 4% savings knocks $24.15 off the average family’s $603.63 tab for back-to-school spending. (If you have a college student, that’s at least $32.35 off their $808.71 in supplies.)

But shoppers hoping to snag deals during their state’s holiday must contend with another back-to-school issue: homework. States often have detailed lists of what qualifies for the tax exemption and what doesn’t within a broader category like clothing or school supplies, says Carol Kokinis-Graves, an attorney and senior analyst for tax advisory firm CCH. Some might include say, handbags or athletic gear, while others exclude them. (Follow the links in our state list below for the full details on each holiday.)

Unfortunately, you may also have some sales tax to contend with. States often leave it up to individual cities and counties to decide whether to waive their portion of the tax, Kokinis-Graves says. That portion can still be substantial. New Mexico doesn’t require retailers to participate, either. Check your local news or the state department of revenue to see what’s going on in your area before you decide which local mall or stores to visit.

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6:31 am April 22, 2012

Randy Sing wrote:

You are going to discover me nosing all about your net site once again

3:39 am July 30, 2011

Jimmy wrote:

Oregon – every day is a sales tax holiday, 365 days/year.

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